Europe · Business news · Markets · 20 Jul 2026
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Andy Burnham's first day as UK prime minister on 20 July brought a cabinet clear-out in which Rachel Reeves left as chancellor and David Lammy and Steve Reed also departed. Burnham told reporters he would keep the existing fiscal rules and use any flexibility within them. The 10-year gilt yield widened to 5.04% that afternoon from 4.97% late on the previous Friday, and sterling slipped to $1.3418 from $1.3453. He also promised a ten-year plan later in the year and immediate cost-of-living measures.
Gilt yields set the base for UK borrowing costs. Banks and insurers are exposed through their bond holdings and through mortgage and annuity pricing; housebuilders and property companies through mortgage rates and the yields used to value buildings; and regulated utilities through the cost of refinancing large debt piles. The report ties the move to caution about the new government's fiscal plans rather than to any announced measure, so the direct effect on company earnings on the day was limited to financing conditions.
Reported by AJ Bell (Alliance News) — “Late market roundup: Burnham's fiscal remarks unsettle gilt market” ↗ on 20 Jul 2026.
Official series on 20 Jul 2026 or the last day before it, and the latest observation.
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